Background on Aeroméxico and Delta Partnership
Aeroméxico, Mexico’s flag carrier, and Delta Air Lines have formed a significant alliance since 2016. Together, they transport over 50 million passengers across more than 60 routes and operate more than 90 daily flights. This partnership has been crucial in enhancing connectivity between Mexico and the United States.
U.S. Department of Transportation’s Recent Proposal
On the latest development, the U.S. Department of Transportation (DOT) has proposed removing the antitrust immunity granted to the Aeroméxico-Delta joint venture in 2016. The DOT claims that Mexico has failed to comply with the existing bilateral air services agreement.
Previous Similar Incidents
In January of the previous year, the DOT threatened to withdraw cargo operations from Mexico City’s International Airport (AICM) due to congestion concerns. This move was met with opposition from business leaders, lawmakers, and workers who highlighted the economic and tourism benefits generated by the partnership between Mexico and the U.S.
Impact on Other Airline Alliances
The potential removal of antitrust immunity would also affect low-cost carriers VivaAerobus and Allegiant, who aim to establish a similar agreement starting December 2021.
Current Status and Future Plans
Despite the DOT’s proposal, Aeroméxico and Delta continue to expand their joint offerings. In the past month, they launched two new routes: Mexico-Philadelphia and San Luis Potosí-Atlanta. As a result of the antitrust immunity, they have successfully transported over 50 million passengers via more than 60 routes and over 90 daily flights.
DOT’s Conditions for Removing Immunity
According to the DOT’s statement, if the immunity is removed, Aeroméxico and Delta can still maintain their commercial alliance with free competition features such as code-sharing, marketing cooperation, and frequent traveler program collaboration.
Moreover, Delta would be allowed to retain its stake in Aeroméxico and continue operating all existing flights.
Key Questions and Answers
- What is the current situation between Aeroméxico and Delta? Aeroméxico and Delta are evaluating the DOT’s proposal to remove their antitrust immunity and will provide a joint response soon.
- How would removing the immunity affect the partnership? The alliance could still operate with free competition features, including code-sharing and marketing cooperation.
- What is the impact on other airlines? The proposed change could affect low-cost carriers VivaAerobus and Allegiant, who aim to establish a similar agreement.
- What were the previous incidents involving the DOT? In 2020, the DOT threatened to withdraw cargo operations from Mexico City’s AICM due to congestion, which was met with opposition from various stakeholders.
